Chen, J orcid.org/0000-0002-4076-7121, Liu, X, Song, W et al. (1 more author) (2020) General managerial skills and corporate social responsibility. Journal of Empirical Finance, 55. pp. 43-59. ISSN 0927-5398
Abstract
We show that a CEO’s general managerial skills are negatively related to the level of corporate social responsibility (CSR) undertaken by the firm. This finding is robust to alternative measures of CSR and alternative econometric specifications. The negative effect of general managerial skills on CSR persists when we attempt to address potential endogeneity concerns by employing propensity score matching and an instrumental variables approach. Further, supplementary analysis reveals that this negative effect is stronger in tight labor markets and in firms where shareholders are more short term oriented, consistent with the notion that the broader set of outside options available to generalist chief executive officers acts as a labor market mechanism that makes them less concerned about the firm’s long-term prosperity and thus more reluctant to commit to CSR.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Elsevier B.V. All rights reserved. This is an author produced version of a paper published in Journal of Empirical Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Corporate social responsibility; General human capital; Market for executives |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 01 Nov 2019 13:43 |
Last Modified: | 05 May 2021 00:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jempfin.2019.10.007 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:152963 |
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